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Home sales likely rose again in October

Economists are expecting home resales for October will hit their highest level in more than two years as first time buyers scrambled to take advantage of what they believed was an expiring tax credit.
/ Source: The Associated Press

Economists are expecting home resales for October will hit their highest level in more than two years as first time buyers scrambled to take advantage of what they believed was an expiring tax credit.

Economists polled by Thomson Reuters say sales will show a 1.4 percent increase to a seasonally adjusted annual rate of 5.65 million, up from 5.57 million in September.

The National Association of Realtors' report is scheduled for release today.

The tax credit of up to $8,000 for first-time owners was set to run out at the end of this month, but Congress has renewed it. Buyers now need to sign a purchase agreement by April 30.

One real estate executive says that new deadline means, "we're going to see some good activity coming out of the spring."

At the same time, experts forecast that prices will hit a new low next spring, perhaps falling another 5 to 10 percent, as more foreclosures get pushed onto the market.